More Facts About Credit Cards

A credit card is a plastic card with a magnetic strip, sometimes a microchip, and a number that is unique to the card that serves to make purchases. By its capacity to make payments plastic money or money of plastic as they are also called. Credit cards serve to make purchases and to pay for goods or to withdraw money. Most credit cards come with limits to the amount that can spend on the card, but it is not required by the card provider that you pay to the total amount every month. Instead of this, the balance accumulates interest, and a payment of a minimum percentage of the balance is required each month. Interest is charged on the balance. A great advantage is the flexibility that it gives to the user, who can pay his balances completely every month or can pay part of the balance on the credit card if they prefer. The card establishes the minimum payment and determines the positions of financing for the pending balance. The credit cards can also be used in the automatic tellers or in a bank to use as a cash advance although, unlike debit cards, a commission is usually charged for withdrawing cash. Payment with a credit card is actually a payment with M1 money (credit money) that has all monetary attributes of cash but it is different because this money is not created by the central banks but by the private banks when giving credit.

When something is bought with a credit card, normally the financial organization loads the amount in account at the beginning of the following month without interests. Also there is another mode of payment in which every month an amount is paid to a part of the purchases, but, generally, it has the disadvantage of which interests are received. In both cases, usually receives an annual interest amount called aprAPR. Overseas when you pay with a card in the shop usually requests an identification (driving licence, etc) and also asks to see a signature of the receipt to check that the credit is actually that of the person buying the goods. A times, recommends itself not to put the company/signature in the card, but to make reference to that the DNI is due to watch, where yes appears the company/signature. In the United Kingdom chip and pin has been introduced which requires that you enter a pin code into a machine in the shop each time you use the card. This means that you have to remember the card pin number. Some people do not like this and the credit card provider will often issue a credit card that only requires a signature if you actually ask them to provide you with this type of card.

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